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California Bioenergy LLC
Dairy Digester Overview
July 1, 2014
Prepared for
MEETING OF THE CALIFORNIA STATE BOARD OF FOOD AND AGRICULTURE
Plugging Dairies into a Renewable Future.
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California Bioenergy LLC
Dairy Digester Status and Opportunity § The numbers: development picking up modestly - 2010-‐12 no development. 11 acRve, small, dairy owned - 2013: 5 new digesters. Drivers: Fed 1603 grants + PPAs. New business model – 3rd party developers
- New projects in development or waiRng for SB 1122 - State grants expanded: CDFA, EPIC, AB 118 but < Fed 1603
§ Permi\ng advanced and agencies are partners - Water Board: lined lagoon soluRons, co-‐digesRon early - Air District: NOX soluRons; on-‐going learning - County permi\ng advanced (e.g., Kern Co. “by right”)
§ PotenRal is significant – 1,500 dairies; 0.35 to 1 GW
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California Bioenergy LLC
About California Bioenergy LLC (“CalBio”) § Focused on developing dairy biogas in California § Design, build, finance, own (jointly) and operate projects § Backgrounds in dairies, sustainability, and finance § Established in 2006. Commissioned 3 projects in 2013 § We partner with the dairy farmer - We provide new revenue to the dairy - We enhance flush system and nutrient value of the manure
§ We have become by necessity a mulRfaceted team - Project operaRons and maintenance - Project management, finance, energy, environment, policy - Dairy and nutrient experRse
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California Bioenergy LLC
CalBio – Highlights of 3 Completed Projects CalBio Dairy Project ABEC Bidart-‐Stockdale ABEC New Hope ABEC Bidart-‐Old River
Loca&on Bakersfield, CA (PG&E) Galt, CA (SMUD) Bakersfield, CA (PG&E)
Dairy (Milk Cows) Bidart dairy (1,200) New Hope Dairy (1,400) Bidart dairy (8,400)
Type of Digester Covered Lagoon CSTR Covered Lagoon
Produc&on 1,200 MWh/year 1,300 MWh/year 13,000 MWh/year
Engine Size 600 kW 450kW 2 x 1,000kW
Accomplishments InnovaRve H2S removal system and engine design
Deployed leading German technology from MT Energie
Assembled strong team and built largest project in CA (30% of dairy MWh)
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Digester Value and Economics Focus on three drivers
Program'Component Economic'BenefitI.#Renewable#energy#generation#############(electricity,#pipeline#gas,#fuel)
Long:term#contracts;######Economic#backbone
II.#Greenhouse#gas,#fuel#credits Short#term#contracts;#############################Smaller#revenue#source
III.#Nutrient#management/fertilzer Benefits#to#dairy;###############Revenue#potential
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I. Renewable Resource: Electricity § SB 1122 – a criRcal near-‐term program - Strengths: counterparRes, duraRon, set contract, volume - Price is the issue: - Important to implement SB 1122 where dairy digesters will not lose out to other agriculture projects (90 MW)
- Price needs to be adequate to incubate digester industry - Complex: need to make a solar program fit bioenergy
§ Valuable electricity source – storage resource - Not intermioent; solar and wind are - Gas can be stored and generaRon shaped and dispatched - Value hasn’t been “moneRzable”. AB 2514 provides the opportunity and seeking clarificaRon. PG&E interest.
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California Bioenergy LLC
Renewable Resource: Fuel & Pipeline § LimitaRons - No program analogous to SB 1122. Industry needs credit-‐worthy counterparRes, set contract and incubaRon price
- Pipeline injecRon requires mulRple projects clustered
§ OpportuniRes - Air quality advantages: Removes NOx issue. Renewable CNG replaces diesel trucks; potenRal for farm equipment
- Fuel (RIN and LCFS) credits provide supplemental revenue stream. Markets new, volaRle but upside vs carbon credits
- Fuel projects via a pipeline or fueling staRon. Hybrid soluRons. Milk haulers in Midwest.
- Grant programs for fuels
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California Bioenergy LLC
II. GHG: PotenRal for Significant Impact
§ Reason we formed CalBio: viewed destrucRon of a GHG, vented as a waste, as an asset of California and its dairies
§ PotenRal for large quanRRes of high-‐quality offsets from California projects - EsRmates vary from 6 to 8 million tonnes CO2e at methane 21x. (24 to 32 million tonnes CO2e at 80x.)
§ Value of fuel credits potenRally larger § Issues with credits: Limited contract period, which decreases use of credits as a “financeable” revenue stream
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III. Nutrient Management and FerRlizer
§ Nutrient issues include
1. Land-‐constrained dairies: need to export nutrients
2. Land-‐enabled dairies: potenRal to improve use of manure-‐based nutrients and decrease potenRal water table impacts. Also decrease use of chemical ferRlizer.
3. SoluRons needed for flush (majority) and scrape dairies
4. PotenRal new revenue stream from ferRlizer export or beoer onsite use, improving digester economics
§ Area in development and addiRonal study needed
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Emerging Nutrient Data and SoluRons 1. Nutrient removal soluRons - For scrape dairies: - Emerging soluRon digested solids as soil amendment. - Future development for liquids as ferRlizer (expensive)
- Flush dairies: - SoluRons difficult. Limited impact on nutrient removal. PotenRal revenue. Covered lagoon sludge may have value
2. Nutrient improvement for farm use - For flush dairies, data shows covered lagoon digesters increase concentraRon of plant-‐ready Nitrogen
- PotenRal to improve nutrient management, - Next step – studies needed
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California Bioenergy LLC
Old River Project – Largest in State
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§ Dairy bioenergy benefits Ø Address “duck curve” – renewable energy source that
can balance intermioent solar cost effecRvely
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CalBio Contact InformaRon
Neil Black (President) [email protected] 917-‐589-‐6009
Ross Buckenham (CEO) [email protected] 214-‐906-‐9359
www.calbioenergy.com
